Not such a super idea

As part of the May 9 budget, federal treasurer Scott Morrison has raised the possibility of allowing first-home buyers to dip into their super. Whether this happens or not – and at the time of writing prime minister Malcolm Turnbull poured cold water on the idea – it’s interesting to consider how many people this measure would target.

Martin North, principal of Digital Finance Analytics, says most prospective purchasers would need a deposit of at least $50,000 to get into the current market. His data shows that of the 140,000-plus households in their early 30s who want to buy a property, less than half have a super balance of at least $50,000. This figure is even less for those in their late 20s. Younger households, who are more inclined to buy property, typically have lower super balances because they haven’t been in the system long enough to have benefited from compounding.